By Wendy Van Sickle
Columbus, Ohio, Feb. 15 – Cineplex Inc. priced C$575 million of 7 5/8% senior notes due March 31, 2029 (BB-/BB) on Thursday, according to a news release.
Guidance had been tightened to a yield of 7¾% to 7 7/8% from earlier guidance for a yield in the 8% to low 8% area, according to market sources.
BMO Capital Markets Corp. and Scotia Capital (USA) Inc. were active bookrunners. In addition, RBC Capital Markets LLC and TD Securities (USA) LLC were bookrunners for the Rule 144A offering, which will also be distributed to qualified investors in Canada.
Proceeds will be used to repay the company’s existing senior credit facility, to repay the existing 7½% senior secured second-lien notes due Feb. 26, 2026, to redeem C$100 million in outstanding convertible notes due Sept. 30, 2025 and for general corporate purposes.
Cineplex is a Toronto-based movie theater operator.
| Issuer: | Cineplex Inc.
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| Amount: | C$575 million
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| Issue: | Senior notes
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| Maturity: | March 31, 2029
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| Active bookrunners: | BMO Capital Markets Corp. and Scotia Capital (USA) Inc.
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| Bookrunners: | RBC Capital Markets LLC and TD Securities (USA) LLC
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| Co-managers: | CIBC Capital Markets and Canaccord Genuity Corp.
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| Coupon: | 7 5/8%
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| Call protection: | Two years
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| Trade date: | Feb. 15
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| Settlement date: | Feb. 26
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| Ratings: | S&P: BB-
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| Fitch: BB
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| Distribution: | Rule 144A, Canada
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| Guidance: | 7¾% to 7 7/8%, tightened from 8% to low 8% area
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